Metaverse: The Next Frontier for Marketing 4.0
The world of marketing is constantly evolving, driven by digital technologies that disrupt marketing channels. Marketing 4.0 is where consumers are enabled by technology and digitalization to become active participants in the innovation and development of products and services through co-creation activities. Transitioning from traditional to digital empowers businesses to build customer loyalty and brand sustainabilityi. With the emergence of metaverse, marketers need to devise new strategy to engage customers digitally.
State of Metaverse in Asia
The market size of metaverse business is expected to reach US$1.5 trillion by 2030ii. Investors and businesses are competing for a share of wallet for the "next big thing". Economic benefits from gaming, social networking, entertainment, interactive technology, and a broader spectrum of influencers have been increasing throughout Asia. Metaverse-related trademarks could grow to US$8 billion in mainland China alone iii.
Pioneering firms have already entered into the metaverse field to offer digital assets, especially the gaming industry in Asia. The gaming companies offer customizable avatars, 3D Charades and roam virtual spaces across multiple metaverses and many more to capitalize on the countless possibilities of the virtual world.
Digital Marketing in Metaverse
Metaverse marketing allows brands to reach their target audience creatively. It represents a new platform for digital marketers to build strong bonds with the audience. Marketers may use metaverse to build engaging and interactive campaigns to connect with customers, opening up a new frontier in showcasing their products and services. It will become a venue where a variety of activities, brands, and even whole economies coexist, blending the physical with the virtual environment.
Extended Reality
Extended reality (XR), taking the elements of augmented reality (AR) and virtual reality (VR), combined with traditional Internet use to create a new platform for socializing, gaming and working. Metaverse makes it accessible from all devices and apps, so it won’t be just a VR experience.
Digital Avatars
In the metaverse, where avatars reflect actual consumers, online identities are critical. Like in real life, people in the 3D environment are spending a lot of money on self-expressioniv. As a result, the direct-to-avatar (D2A) economy is growing in popularity. Companies then profit on this by selling and promoting their virtual assets directly to avatars, empowering ownership and content co-creation.
Digital Collectibles - NFTs
NFTs (Non-Fungible Tokens) are digital proofs of ownership for a unique cryptographic asset that cannot be altered. NFTs are recorded using blockchain technology which enables customers to own and exchange digital assets. NFTs are comparable to serial numbers, which luxury brands may employ to ensure the authenticity of their products. By 2025, the NFT market is expected to reach $80 billionv. NFTs are presently one of the most prominent marketing tactics adopted by well-known companies, in which they offer images, films, animations, and other formats to online users.
Metaverse is the next frontier for online engagement that will transform the digital marketing landscape. The best approach for businesses to move forward is to embrace digital disruption.
i https://www.igi-global.com/dictionary/marketing-40-and-internet-technologies-in-the-tourism-industry-context/76201
ii https://www.campaignasia.com/article/metaverse-and-nft-marketing-are-you-future-proofing-your-brand/475759
iii https://www.ft.com/content/bf907e38-ff1f-41c7-b062-529ef238aec4
iv https://www.voguebusiness.com/technology/shaping-online-avatars-why-our-digital-identities-differ
v https://www.outlookindia.com/business/the-nft-metaverse-link-understanding-the-bigger-picture-news-182520
